4 min readHow to Position Your Company to Lenders in a Challenging Venture Debt Environment. If you are considering venture debt financing to strengthen your balance sheet, extend your cash runway, and minimize equity dilution, understanding the current challenging lending environment will be crucial to your success. In the past two years, higher interest rates, inflation, economic…
3 min readCommentary – Q1 2024 The venture debt markets have generally hovered around historical lows over the past 15 months, however, according to Pitchbook, venture debt deal value, as a percentage of total venture capital fundings, rose to 18.6% in the first quarter of 2024. Dating back to 2013, the average annual debt financings, as a…
1 min readThe early-stage debt financing market, which includes venture debt, had its foundation rattled little more than a year ago when its de facto leader, Silicon Valley Bank, suffered a major crisis. This event subsequently triggered a broader venture banking upheaval that reverberated throughout the venture debt markets. Watch a recording (5/08/2024) of Capital Advisors Group’s…
2 min readCommentary – Full Year 2023 The venture debt markets got off to a historically tepid start in 2023 and continued its slow pace through Q2. According to Pitchbook, despite this slow start, the market rebounded significantly in the second half of 2023. Ultimately, total funding ended up at a four-year low while total deal count…
2 min readCommentary The venture debt markets got off to a historically tepid start in 2023 and continued to slow its pace through Q2. According to Pitchbook, total funding was down another 15% from the prior quarter and dropped more than 67% from the same period in 2022. As we review debt as a percentage of the…
3 min read Commentary The venture debt markets got off to a historically tepid start in 2023. According to Pitchbook, total funding was down more than 60% from the prior quarter and dropped more than 40% from the same period in 2022. As we review debt as a percentage of the venture equity markets, the Q1 2023…
4 min readVenture Debt Non-dilutive capital for venture backed startups in early and growth stages Revenue-Based Financing Funding based on a fixed percentage of gross revenues Equipment Leasing Equipment rental agreement with a lender based on a fee schedule Asset Based Lending Revolving line of credit or term loan secured by collateral Recurring Revenue Lines Line of…
5 min readWhat is Venture Debt, why it may be applicable to you and how Capital Advisors Group helps to support Venture Debt raises. What is Venture Debt? Venture debt is a broad term but is often referred to as growth debt or term debt. It is a loan that is commonly offered by venture banks…
5 min readCo-authored by Ryan McCartney Startups are seeking new sources of debt financing following the collapse of Silicon Valley’s biggest lender. The collapse of Silicon Valley Bank has spurred venture capital-funded growth companies to take a harder look than ever at their cash flows, burn rates, and how much runway they have to profitability. Many of…
3 min readAuthor’s Note Since compiling the data for our Q4 2022 debt market quarterly update, the market has faced unprecedented turmoil led by the collapse of Silicon Valley Bank. In order to provide consistent updates on the debt financing market, we are distributing our Q4 2022 report but also want to provide context on the current…